http://blogs.msdn.com/b/gertd/archive/2008/06/03/vsts-2008-database-edition-gdr-june-ctp.aspx?wa=wsignin1.0
Apply below fix from MS after applying VS 2008 SP1 and it removes the requirement for using a local SQL instance and works perfectly fine.
http://www.microsoft.com/downloads/details.aspx?FamilyID=bb3ad767-5f69-4db9-b1c9-8f55759846ed&displaylang=en
web.config settings:
ReplyDeleteUnder section
Under section: